The share market may be tumbling lower today but that hasn't stopped the Pilbara Minerals Ltd (ASX: PLS) share price from charging higher.
In afternoon trade, the lithium producer's shares are up 7% to a record high of $1.55.
This latest gain means the Pilbara Minerals share price is now up a massive 78% since the start of the year.
Why is the Pilbara Minerals share price charging higher?
The catalyst for the rise in the Pilbara Minerals share price on Wednesday has been the release of a drilling update this afternoon.
According to the release, the company has achieved further significant assay results from the current exploration and resource extension drilling program underway at its 100%-owned Pilgangoora Project in Western Australia. This drill program is targeting the under-explored region on the tenement boundary adjacent to the former Altura Lithium Operation. This is with the intention of optimising and growing the future pit inventory.
The release explains that the initial results from the program have identified zones of high-grade pegmatite mineralisation adjacent to the tenement boundary and future South Pit expansion area. This is outside of the previously identified mineral resource.
What now?
Geological modelling is currently underway and on track for the delivery of an updated Pilgangoora Project Mineral Resource in the September quarter of 2021.
Pilbara Minerals' Managing Director and CEO, Ken Brinsden, believes this exploration and drill program will help realise the full potential the company saw in the area, which was a key reason for the acquisition of Altura Mining's assets.
He said: "The wide and near-surface intercepts of relatively high-grade mineralisation will go a long way to expanding our mining envelope and pit inventory of the combined South Pit areas."
"As we work towards a restart at the Ngungaju Plant, the success of this exploration and drill program and the efforts of our team to further integrate both assets means we can be confident in a bright future for the greater Pilgangoora Operation," he added.
